Daily Buzz 9 April 2025

Top News

Tariff war escalates

US President Donald Trump ratcheted up his tariff war with China by slapping an additional 50 percent levy on imports, taking tariffs that come into effect on Wednesday to 104 percent.

The escalation comes a week after Trump launched his global trade way by announcing a base 10 percent tariff on all US imports and selected higher tariffs on 85 global trading partners he accused of unfair trade practices.

China is among only a few countries to take retaliatory action against what it calls "bully" and "blackmail" tactics. Vowing to "fight to the end," it announced counter-tariffs last Friday. Trump, in turn, threatened additional tariffs if China didn't rescind the retaliatory action by Tuesday. China called the threat "a mistake upon a mistake."

All eyes will be on China today to see how Beijing responds.

Vance reprimand

China rebuked remarks by US Vice President J.D. Vance, who referred to "Chinese peasants" making goods that the US imports in an interview defending Donald Trump's tariffs. The remarks caused a backlash on Chinese social media sites.

Lin Jian, the spokesperson for the Chinese Foreign Ministry, said, "It's both astonishing and lamentable to hear this vice president make such ignorant and disrespectful remarks. Pressure, threats and blackmail are not the right way to deal with China."

China-EU phone call

Chinese President Li Qiang, in a phone call with European Commission President Ursula von der Leyen, called unilateral US tariffs "a typical case of unilateralism, protectionism and economic bullying." He said China's firm response is "not only to safeguarding its own sovereignty, security and development interests but also to defend international trade rules and international fairness and justice."

Protectionism leads nowhere, and only openness and cooperation represent the right path for mankind, Li added.

The EU, which has been slapped with a 20 percent tariff on its imports to the US, is considering retaliatory action. Von der Leyen, according to a readout of the call issued by her office, stressed the responsibility of Europe and China, as two of the world's largest markets, to "support a strong reformed trading system, free, fair and founded on a level playing field."

Top Business

Stocks claw back losses

Chinese stocks bounced back on Tuesday, despite US President Donald Trump's threat to impose another 50 percent in tariffs on China.

More than 100 companies, including state-owned PetroChina and private firms like battery giant CATL, issued statements of corporate support for China's capital market, and plans for stock buyback.

After Monday's steep plunge in prices, the Shanghai Composite Index gained 1.58 percent, while the Shenzhen Component Index edged up 0.64 percent. Hong Kong's Hang Seng Index gained 1.51 percent.

State-owned funds and investment firms announced plans to further increase holdings.

There was a net inflow of more than 66 billion yuan (US$9 billion) into equity exchange-traded funds.

Faster tax rebates

China has updated its policy of allowing tourists to reclaim value-added taxes on goods they purchase while in the country. Instead of the rebates available upon departure, they will now be available at retail tax-free stores.

Economy

Employment help

China unveiled guidelines to adopt a more systematic approach to helping college graduates find good jobs. It promises the establishment of a nationwide employment services network that is inclusive, well-functioning, and reliable, within three to five years.

Last year, China had over 11.7 million college graduates.

The guidelines highlight six key areas of focus: optimizing the higher education training system, strengthening career guidance services, improving job-market and recruitment systems, enhancing support mechanisms for job seekers in difficulty, innovating employment monitoring and evaluation tools, and reinforcing supports and safeguards for graduate employment.

Corporate

Mixed auto sales

German sports carmaker Porsche and General Motor's joint venture in China delivered divergent reports on sales in the Chinese market for the first quarter of 2025.

Porsche's sales dropped 42 percent in the company's worst quarterly result in China since 2013. Its North American deliveries rose 37 percent, yet Porsche is considered one of the most vulnerable to new US tariffs.

SAIC-GM-Wuling, a joint venture between SAIC Motor, General Motors, and Liuzhou Wuling Motors, reported a 71 percent increase in year-on-year growth for new energy vehicle sales, while its overall auto sales were up about 12 percent.

Diabetes drug

Chinese biotech firm Jianyou Co. said it has received a letter of approval for its liraglutide injections from the U.S. Food and Drug Administration. The weight-loss drug, initially launched by Denmark-based Novo Nordisk, is also used to treat type 2 diabetes.

The FDA approval puts Jianyou in direct competition with Novo Nordisk in the US market, along with China's Hanyu Pharmaceutical, which got FDA approval last June jointly with Hikma Pharmaceuticals USA.